US stocks closed sharply higher on Thursday, led by a 3 percent gain on the Nasdaq, and a dramatic market reversal was reversed as US President Joe Biden announced new tougher sanctions against Russia after Moscow began its all-out invasion of Ukraine. .
The S&P 500 rose more than 1 percent and ended its four-day decline amid growing concerns over the crisis. The Dow Jones also ended in positive territory.
After consulting with colleagues from the Group of Seven Nations, Biden announced measures to impede Russia’s ability to do business in the world’s major currencies, as well as sanctions against banks and state-owned businesses.
The White House has warned Americans that the conflict could lead to higher fuel prices in the US, but US officials are working with colleagues in other countries on the combined release of additional oil from global strategic crude reserves.
All three major indices were sold earlier in the day on news of Russia’s invasion of Ukraine, and the Nasdaq fell more than 3 percent at the open. After Biden’s comments, they reached session highs and marched towards the close.
“The tough US and European stance is sending a loud message to financial markets that they will try to cripple the Russian economy as much as they can,” said Peter Cardillo, chief market economist at Spartan Capital Securities. New York.
“From a positive point of view,” he said, adding that sales in the market may not end. “Looking forward, we’re likely exposed to higher oil prices, possibly higher commodity prices.”
Investors are concerned about how rising inflation will affect the outlook for the Federal Reserve and higher interest rates.
Ukrainian forces battled Russian invaders from three sides on Thursday after Moscow launched a land, sea and air strike in the biggest attack on a European state since WWII.
The information technology sector rose 3.5 percent, giving the S&P 500 its biggest support, reversing recent action.
The Dow Jones Industrial Average rose 92.07 points, or 0.28 percent, to 33,223.83, the S&P 500 rose 63.2 points, or 1.50 percent, to 4,288.7, and the Nasdaq Composite, up 436.10 points, or 3.34 percent. It rose to 13,473.59.
Earlier in the session, the Nasdaq fell more than 20 percent from its November closing record. Had it closed at this level, it would confirm that it is in a bear market.
“Tech had the most technical damage, so it’s good to see tech pick up the pieces,” said Jamie Cox, managing partner of Harris Financial Group in Richmond, Virginia.
The S&P 500 confirmed earlier this week that it is in correction. A correction is confirmed when an index closes 10% or more below the record close.
CBOE Volatility Index, known as Wall Street’s fear indicator, closed the day with a decline.
“You’ve had a lot of uncertainty priced into the market,” said Keith Lerner, co-investing officer at Truist Advisory Services in Atlanta.
Progressive issues outpaced declining issues on the NYSE by 1.14 to 1; On the Nasdaq, 1.53 to 1 is in favor of progressives.
S&P 500 posted two new 52-week highs and 64 new lows; The Nasdaq Composite recorded 19 new highs and 974 new lows.
(Reported in New York by Caroline Valetkevitch. Additional reports in Bengaluru by Susan Mathew, Devik Jain and Bansari Mayur Kamdar. Edited by Anil D’Silva and Matthew Lewis)